The number of new-home construction starts jumped 4.9% from September to October, Realtor.com reports. Builders began construction at a seasonally adjusted annual rate of 1.53 million in October while permits remained at September’s same level of 1.545 million. Housing starts exceeded MarketWatch economist expectations, but permitting fell short. Economists forecasted new-home starts to hit 1,49 million and permits to hit a pace of 1.57 million. Realtor.com says the unexpected surge in new-home construction starts comes from single-family starts, which surged 6.4%. The positive growth occurred in every US region except the Northeast.
All regions except the Northeast experienced an increase in housing starts despite rising coronavirus cases across many parts of the country, led by the 12.9% increase in the South. Permitting rose slightly in the South, West and Midwest, but fell markedly in the Northeast.
The big picture: The housing starts report follows yesterday’s release of the November home builder confidence index from the National Association of Home Builders. The index inched higher for the fourth consecutive month, demonstrating the upbeat outlook in the construction industry.
Indeed, virtually every home builder is seeing rising sales as Americans look to leave urban areas for larger homes in the suburbs only to find very few existing homes up for sale.
Advertisement
Related Stories
Construction
5 Steps to Cracking the Code for a High-Performance Home
As a model of energy savings, water conservation, indoor comfort and health, and use of on-site renewable energy, The New American Home 2024 offers valuable lessons
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home